Xiaomi invests in online video

Chinese tech company Xiaomi on has announced an investment of $1 billion (€0.88bn) to build up business in online video.

Lei Jun, CEO of the smartphone manufacturer, said Xiaomi would form an association with video-sharing websites and film makers, but the company would not make content itself.

Xiaomi aims to gain an edge through about 100 million Xiaomi devices that stream video. Xiaomi was the second largest smartphone maker in China with 13.5 million smartphones shipped in the first quarter this year, trailing Apple, whose shipments stand at 14.5 million, according to IT consultancy IDC.